ILUS sells stake in subsidiary to Actelis Networks By Investing.com

NEW YORK – ILUS International Inc. (OTC: ILUS), a company specializing in mergers and acquisitions within the public safety and industrial sectors, has entered into an agreement to sell its 61% ownership in Quality Industrial Corp (QIND) to Actelis Networks, Inc. (NASDAQ: ASNS). The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to be finalized within 60 days from today.

Under the terms of the binding term sheet, Actelis will issue 19.99% of its common stock to ILUS, with the remaining consideration paid in preferred non-voting shares. These shares will not be convertible into common stock for at least six months post-closing or until a registration statement becomes effective, whichever comes first.

QIND, a subsidiary of ILUS, is a manufacturer and service provider for industries including oil, gas, and utilities, known for its design, consultation, and maintenance of liquefied petroleum gas (LPG) systems. It operates seven facilities in the United Arab Emirates and serves approximately 40,000 customers.

Following the acquisition, QIND will be integrated into Actelis as its industrial subsidiary, complementing Actelis’ existing technology-focused operations. Actelis is recognized for its cyber-hardened, rapid-deployment networking solutions widely used across various sectors such as government, military, and utilities.

ILUS CEO Nicolas Link expressed confidence that the deal with Actelis, a NASDAQ-listed company, will not only accelerate QIND’s growth but also strengthen ILUS’s balance sheet. This, in turn, is expected to facilitate raising additional capital for QIND’s expansion and further ILUS’s planned acquisitions.

Actelis aims to leverage QIND’s capabilities and expand into new geographical markets, enhancing its portfolio in critical verticals such as energy, utilities, and public safety. Furthermore, Actelis is exploring additional synergies with ILUS’s public safety subsidiary, Emergency Response Technologies Inc. (ERT), although ERT is not part of the current transaction.

The information reported is based on a press release statement from ILUS International Inc. and has been presented without any promotional language or subjective commentary to ensure a clear, factual report of the events and agreements described.

InvestingPro Insights

ILUS International Inc. (OTC: ILUS) has shown a dynamic financial landscape over the recent period. With a market capitalization of $20.45 million, the company’s performance metrics reflect both strengths and areas of concern. Notably, ILUS has experienced a significant return over the last week, with a 9.09% increase in its price total return. This could indicate investor optimism about the company’s strategic moves, such as the recent sale of its ownership in Quality Industrial Corp.

On the financial health side, ILUS’s liquid assets have been reported to exceed its short-term obligations, suggesting a stable liquidity position which may reassure investors of the company’s ability to meet its immediate financial responsibilities. This is a critical factor considering ILUS’s active pursuit of expansion and acquisitions.

However, it’s important to note that ILUS has not been profitable over the last twelve months, and the price has fallen significantly by 66.77% over the last year, which may raise concerns about its long-term value retention. Additionally, the company does not pay a dividend, which could influence the investment decisions of income-focused shareholders.

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